The Gujarat High Court has quashed the cancellation of GST registration on ground of vague show-cause notice bereft of any material particulars.
The writ applicant, Vageesh Umesh Jaiswal is a proprietor of a proprietary firm running in the name of M/s. All Metals is engaged in the business of trading aluminum round bars, steel tubes, pipes etc. The proprietary firm is registered under the Gujarat Value Added Tax Act, 2003. On 17th March, 2021, the premises of the writ applicant were searched by the Asst. Commissioner of DGGI (Directorate General of Goods & Services Tax Intelligence), Ahmedabad. In the course of the search, the officer seized various documents like purchase invoices, ledger copies etc.
In the reply to the show-cause notice, the writ applicant brought to the notice of the Commercial Tax Officer that the show-cause notice was as vague as anything as no details of the name of the supplier etc. had been furnished.
The division bench of Justice J.B.Pardiwala and Justice Nisha M.Thakore held that this litigation has really disappointed us and that too at the end of a tiring day.
“We are disappointed for two reasons; first the mode and manner in which the entire exercise has been undertaken by the Commercial Tax Officer in cancelling the registration and secondly the vehemence with which the learned AGP has opposed this writ application despite serious shortcomings in the impugned action. When we pointed out to the learned AGP that the show-cause notice is as vague as anything, the learned AGP very vehemently maintained that the show-cause notice contains the minutest of the details on the basis of which the writ applicant could have given a proper and effective reply,” the court added.
The court further said that there are no reasons assigned in the show-cause notice. What has been done is mere incorporation of the provisions of Rule 21(b) of the Rules. If that is to be termed as reasons, then we are really left wondering as to how do we adjudicate such matters. In the final order, cancelling the registration, there is just one line stating “Dealer is engaged in bogus billing”.
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